Clavister: Q2 in line, awaiting new BAE orders - ABG

EBITDA SEK 3m (ABGSCe SEK 2m)
ARR grew 14% y-o-y supported by solid order intake
Slight lift to 2023e EBITDA, '24e-'25e flat


Solid ARR and order intake in Q2

Clavister delivered a solid Q2 with SEK 38m sales (-1% vs. ABGSCe SEK 39m) and SEK 3.4m EBITDA vs. ABGSCe SEK 1.8m. Organic sales growth was 6%. This marked the company's fourth sequential quarter of positive EBITDA. LTM adj. EBITDA was SEK 12m. The order intake was strong at SEK 45m, up 43% y-o-y, breaking a three-quarter negative trend in order intake. Management attributed the growth to stronger demand for cybersecurity, but also to a significant new 5G contract. 5G adoption has been weaker than expected over the last year, in part owing to a lower willingness from operators to make big investments. ARR was SEK 113m, +14% y-o-y and +3% q-o-q. We expect that a better underlying market as well as initial roll-out of the BAE order will support accelerating organic growth in the coming quarters, supporting further improvement in profitability. Operating cash flow was slightly weak at SEK -11m, mainly because of higher WC. Cash flow before WC was SEK 0.5m. Management guided for positive operating cash flow in H2'23 also.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/clavister/Equity-research/2023/8/clavister---q2-in-line-awaiting-new-bae-orders/